US inflation saw a notable increase in January, driven by rising costs in groceries, gas, and housing. Core CPI also exceeded expectations, spurred by higher car insurance, airfares, and prescription drug prices, suggesting inflation progress has stalled despite a steady labour market.
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Adhil Shetty, CEO of BankBazaar, urges Finance Minister Nirmala Sitharaman to raise the 30% income tax threshold to ₹18 lakh in Union Budget 2025, restructure the tax brackets, and introduce a 30% flat deduction on gross income.
Emami's MD, Harsha Vardhan Agarwal, new Ficci president, states that consumption slowdown, impacted by inflation, will take a few quarters to normalize. He suggests controlling inflation and boosting government spending to revive demand, noting a mixed bag for FMCG with rural uptick and urban slowdown.
Industry bodies requested tax cuts, increased public spending, and focus on MSMEs in the budget to boost demand and job creation during their consultations with FM Sitharaman. Proposals included reducing personal tax rates, excise duty, improving credit flow to small businesses, and developing rural industrial parks, with an emphasis on public capex and female workforce participation.
Government and RBI are considering a 'cooling off facility' to block funds received in bank accounts to combat online frauds. This measure targets mule accounts used in digital payment frauds. Multiple ministries and banks are collaborating to strengthen verification and prevent misuse, making it a top priority for bank CEOs to address this growing issue.
Indian stock markets tumbled on Thursday, with Sensex closing below 80,000 and Nifty below 24,000 for the first time since late November. The sell-off, driven by hawkish US Fed statements and foreign fund outflows, wiped out Rs 3.8 lakh crore in investor wealth. Selling pressure was broad-based, with ICICI Bank, Reliance, and HDFC Bank leading the decline.
The government's subsidy burden for FY25 is projected to exceed budget estimates, reaching nearly Rs 4.1 to Rs 4.2 lakh crore due to higher food and fertiliser costs. Despite efforts to rationalise subsidies, fertiliser subsidies alone may exceed budget due to increased import costs and a stronger US dollar.
US inflation saw a notable increase in January, driven by rising costs in groceries, gas, and housing. Core CPI also exceeded expectations, spurred by higher car insurance, airfares, and prescription drug prices, suggesting inflation progress has stalled despite a steady labour market.
The Centre has named 20 priority countries and 6 focus sectors to enhance exports, with a strategy meeting held with Indian Mission officials to boost trade. Additionally, over 5,000 startups have closed, but the overall startup ecosystem continues to grow with the recognition of over 1,57,000 startups.
Automobile retail sales in India dropped by 7% as overall demand declined in February, according to FADA. Passenger vehicle sales fell by 10% to 3 lakh units, while two-wheeler sales dropped by 6% to 13.5 lakh units. Dealers expressed concerns about excessive inventory and weak market sentiment affecting sales and overall dealer viability.